Saxon Capital Group Inc. · OTC:SCGX
Saxon Capital — ABS East 2005
35 slides from Saxon Capital's conference presentation, Sep 14, 2005
Slide 1: Saxon Capital, Inc.
“ahs Saxon Capital, Inc."
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain information contained herein may constitute “forward-looking statements” pertaining to management projections of future initiatives and results. Readers are cautioned that while management believes its projections to be accurate, actual results and the timing of ce
Slide 3: Executive contact details
Robert BFasiep, CPA Executive Vice President (Ghet Foancel Other ‘Sexon Capita, Ine ‘Telephone: 809) 967.180 Catt 00) $1256 Fete: 04) 2177779 met Fasteptossxcng com Fo Saxon Capital Inc. oN ‘Saxon Mortgage Services, in, 14708 Mercantile Dre Nas Fortwo 76137-9605 “ary sas'7200 + Far (17) 605 7509. ‘e
Slide 4: Information & Where to Find It
INFORMATION & WHERE TO FIND IT q Corporate presentations, company financials, corporate SEC filings and other useful links can be found at www.saxoncapitalinc.com (click on Corporate and then the Investor Relations section). q Underwriting guidelines, matrices and product profiles can be found at ww
Slide 5: Saxon Companies
SAXON COMPANIES A nationally recognized wholesale and correspondent mortgage lending company A retail origination platform leveraging a national mortgage lending branch network and online lending alliances A premier mortgage servicing company
Slide 6: Condensed Consolidated Balance Sheet
CONDENSED CONSIDATED BALANCE SHEET Data as of 6/30/2005
Slide 7: Saxon Strategy
SAXON STRATEGY q Saxon is building a high-quality non-conforming mortgage loan portfolio § Portfolio accounting § Holder of the first loss/residual risk (below BBB – credit risk) § Proactively manage the credit risk through our “Life of the Loan Credit Risk Management” philosophy § Nine years of per
Slide 8: Owned Portfolio Growth
OWNED PORTFOLIO GROWTH Data as of 6/30/2005 $4,297 = 70% $1,808 = 30%
Slide 9: Proven Track Record
PROVEN TRACK RECORD Data as of 6/30/2005
Slide 10: Servicing
SERVICING Data as of 6/30/2005 $18.6 billion = 75% $6.1 billion = 25%
Slide 11: Volume & Channel Mix
VOLUME & CHANNEL MIX q 1998-2000: Saxon was more involved in the bulk market q 2000-present: migration towards a balanced origination mix q Wholesale: core production channel with a network of approved brokers q Retail: nine branches q Correspondent: emphasis on single loan flow business Data as of
Slide 12: Underwriting
UNDERWRITING
Slide 13: Locations
LOCATIONS q Wholesale and Retail Underwriting § Eastern Region Operations Center – Glen Allen, Virginia § Central Region Operations Center – Fort Worth, Texas § Western Region Operations Center – Foothill Ranch, California q Correspondent Underwriting § Eastern Region Operations Center – Glen Allen,
Slide 14: Program Production
2001 Funded Amount 2002 Funded Amount 2003 Funded Amount 2004 Funded Amount 2005 Funded Amount Traditional* Score Plus Manufactured Housing ** Second Mortgage Piggyback 2 nd Mortgage Score Direct Other Programs PROGRAM PRODUCTION 74.65% 53.98% 39.82% 30.26% 2.33% 20.79% 43.25% 54.72% 56.58% 87.66% 1
Slide 15: Quality Control
QUALITY CONTROL
Slide 16: Managed at Three Levels
MANAGED AT THREE LEVELS q Underwriting § Appintell on every file § Borrower and Co-borrower social security numbers § Employment company address and phone numbers § Address and ownership verification § Property acquisition dates and cost § OFAC screening q Quality Control: Prefunding and Post Fundin
Slide 17: Managed at Three Levels (continued)
MANAGED AT THREE LEVELS (continued) q Investigation Unit § Performs pre-funding investigations of loans referred by underwriting § Performs 100-150 investigations a month on average § Reviews 100% of Early Payment Default loans (loans which are 60 days delinquent within the first 90 days) for materi
Slide 18: Credit & Servicing Statistics
CREDIT & SERVICING STATISTICS
Slide 19: Quarterly Production Stats
QUARTERLY PRODUCTION STATS Data as of 6/30/2005
Slide 20: State Concentration
STATE CONCENTRATION Data as of 6/30/2005
Slide 21: Credit Score Migration
CREDIT SCORE MIGRATION Data as of 6/30/2005 * Saxon began classifying its production by credit score beginning with quarter ended 6/30/2004.
Slide 22: Loss Severity
LOSS SEVERITY Data as of 6/30/2005 Divestiture from Dominion
Slide 23: Static Pool Delinquency
STATIC POOL DELIINQUENCY Data as of 6/30/2005
Slide 24: Static Pool Losses by Funded Year
STATIC POOL LOSSES BY FUNDED YEAR Data as of 6/30/2005
Slide 25: Servicing
SERVICING
Slide 26: Who Are We?
WHO ARE WE? Data as of 6/30/2005 q Saxon Mortgage Services, Inc. (SMSI) is a wholly owned subsidiary of Saxon Capital, Inc. (SCI). According to Inside B&C Lending (December 2004) SMSI is the 16 th largest subprime servicer. Saxon has been serving the needs of homeowners for over forty years. q Found
Slide 27: Portfolio Distribution
PORTFOLIO DISTRIBUTION Data as of 6/30/2005
Slide 28: Virginia Servicing Site
VIRGINIA SERVICING SITE q Opened July 2005 q Initial staffing for Call Center and Loss Mitigation q Q3 Loan Support, Acquisitions q Q4 Default Management q 2006 full redundancy to Fort Worth q Servicing capacity up to $20 billion q Total seating q FiServ conversion to Enterprise Reporting
Slide 29: Call Center Structure
CALL CENTER STRUCTURE Data as of 6/30/2005 Team environment q Universal agent q Teams of 8-10 representatives q Call Center Rep (CCR) skill sets § CCRI § CCRII § CCRIII q Individual and team performance tracking § Monthly incentive breakdown: - 30% 30 day roll (team) - 30% 60 day roll (team) - 20% a
Slide 30: Loss Mitigation
LOSS MITIGATION Data as of 6/30/2005 Structure and Philosophy q Teams § 60-89 days 13 FTE, average 139 loans to FTE § 90-119 days 7 FTE, average 148 loans to FTE § 120+ days 11 FTE, average 281 loans to FTE § Workout team 7 FTE, average 18 loans to FTE q Foreclosure alternatives § Forbearance/repaym
Slide 31: Loss Mitigation (continued)
LOSS MITIGATION (continued) 2004 2003 2002 2001 2000 to 89 days 58.39% 57.62% 54.78% 54.01% 46.25% to 119 days 44.04% 35.00% 34.80% 30.54% 23.76% to 149 days 26.44% 23.87% 25.23% 20.83% 16.35% days or more 12.14% 10.08% 11.82% 8.29% 9.55% Data as of 6/30/2005 q Titanium solutions/default mitigation
Slide 32: Performing Asset Management Timeline
PERFORMING ASSET MANAGEMENT TIMELINE 0-59
Slide 33: Non Performing Asset Management Timeline
NON PERFORMING ASSET MANAGEMENT TIMELINE 60-FC
Slide 34: Foreclosure and REO Timeline
FORECLOSURE AND REO TIMELINE
Slide 35: Summary
SUMMARY q Seasoned executive management team averaging over 23 years of experience and 8 years of sub-prime credit risk management with Saxon q Diversified loan sourcing through three origination channels – wholesale, retail and correspondent (flow & bulk) q Highly rated servicer q Leveraging over n